ACWA Power owns $67 bln investment portfolio, 60% are in operation: Exec

ACWA Power CFO Abdul Hamid Al Muhaidib

ACWA Power Co. has an investment portfolio of $67 billion, CFO Abdulhameed Al Muhaidib stated in an interview with CNBC Arabia. 

He clarified that 60% of the company’s projects are in operation, while the remaining 40% are under construction and development. 

Part of these projects has been closed, while the remainder will be closed during the current year. 

ACWA Power’s total investment volume in the UAE market is valued at $10 billion, divided into six projects in renewable energy, water desalination and clean gas. 

Al Muhaidib added that the company's output capacity reached 43 gigawatts, 37% of which was renewable energy. Production in the water sector reached 6.4 million cubic meters per day (m3/d) from desalination.  

The company is currently conducting a feasibility study for a second round of the green sukuk program. 

ACWA Power plans to issue sukuk or bonds in the next phase, based on the existing projects that need financing. This is in addition to providing opportunities through direct financing, sukuk or bonds. 

Al Muhaidib indicated that the rise in interest rates will affect upcoming projects, so the hedging of 80% to 100% is mandatory for the financial closure in the upcoming projects. 

Tariff prices in closing projects surged significantly compared to previous years. This was attributed to higher interest rates and prices of materials in general, he noted.